This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.Need a new registration confirmation email? Click here

PetSmart Inc. (PETM): Today's Featured Specialty Retail Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

PetSmart (
PETM) pushed the Specialty Retail industry lower today making it today's featured Specialty Retail laggard. The industry as a whole closed the day up 0.1%. By the end of trading, PetSmart fell $4.37 (-6.6%) to $62.18 on heavy volume. Throughout the day, 9.4 million shares of PetSmart exchanged hands as compared to its average daily volume of 1.3 million shares. The stock ranged in price between $61.30-$62.64 after having opened the day at $61.57 as compared to the previous trading day's close of $66.55. Other companies within the Specialty Retail industry that declined today were:
Mecox Lane (
MCOX), down 9.3%,
Hastings Entertainment (
HAST), down 7.1%,
Hollywood Media Corporation (
HOLL), down 4.5%, and
Copart (
CPRT), down 4.1%.

EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

PetSmart, Inc., together with its subsidiaries, operates as a specialty retailer of products, services, and solutions for pets in the United States, Puerto Rico, and Canada. PetSmart has a market cap of $7.09 billion and is part of the services sector. The company has a P/E ratio of 20.5, above the S&P 500 P/E ratio of 17.7. Shares are down 2.6% year to date as of the close of trading on Wednesday. Currently there are nine analysts that rate PetSmart a buy, no analysts rate it a sell, and 12 rate it a hold.

TheStreet Ratings rates PetSmart as a
buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, good cash flow from operations, solid stock price performance and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.